Bourgeon Capital Loves These Five Stocks. Should You?

#3 Plum Creek Timber Co. Inc. (NYSE:PCL)

Shares held (as of September 30): 113,220
Total Value (as of September 30): $4.47 million
Percent of Portfolio (as of September 30): 3.12%

Analysts are bullish on REIT Plum Creek Timber Co. Inc. (NYSE:PCL), as four analysts covering the stock have a ‘Buy’ rating, while one has a ‘Sell’ rating, and one has a ‘Hold’ rating. Some hedge funds are also bullish, as 14 funds out of the 730 that we follow owned $571.16 million worth of the company’s shares on June 30, with Jim Simons‘ Renaissance Technologies owning 685,900 shares. Shares pay a nice 4.27% dividend yield, although the REIT may have to pay more if interest rates begin moving up.

#2 Schlumberger Limited. (NYSE:SLB)

Shares held (as of September 30): 69,325
Total Value (as of September 30): $4.78 million
Percent of Portfolio (as of September 30): 3.34%

Bourgeon Capital is buying the dip on Schlumberger Limited. (NYSE:SLB), as the fund increased its holding by 30% to 69,325 shares in the third quarter. The oil service giant has had a rare down year, as Brent prices are half of what they were in the middle of 2014 due to a weak Chinese economy and increased OPEC production. Despite the low energy prices, Schlumberger is still profitable, with third quarter earnings per share of $0.78 on revenues of $8.47 billion, down by 33% year-over-year. Schlumberger’s management is adjusting to the oil slump by cutting costs and taken advantage of deflated valuations by acquiring fellow oil service provider Cameron International Corporation (NYSE:CAM) in an accretive $14.8 billion deal. Ken Fisher‘s Fisher Asset Management owned 4.19 million shares of Schlumberger at the end of September.

#1 JPMorgan Chase & Co. (NYSE:JPM)

Shares held (as of September 30): 97,367
Total Value (as of September 30): $5.94 million
Percent of Portfolio (as of September 30): 4.14%

Although shares retraced substantially in August on concerns that a China slowdown would cause a global recession, shares of JPMorgan Chase & Co. (NYSE:JPM) have rebounded strongly since. Given the Shanghai index has stabilized, the market no longer believes China’s economy is in danger of a sharp slowdown that could cause a global recession. That’s good news for JPMorgan shareholders, as a lower probability of a recession means lower charge-offs and higher earnings per share. A healthier Chinese economy also allows the Federal Reserve to raise rates faster, an action that will increase JPMorgan’s return on equity. Fisher Asset Management was also high on JPMorgan, owning 13.82 million shares of it at the end of September.

Disclosure: None